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The Government has recently announced that the UK will be opting in to the Rome I Regulation. This Regulation aims to clarify whose laws are applicable when a dispute arises concerning a contract between people or businesses based in different EU countries. The Regulation is due to come into force in December 2009. A similar Regulation, known as Rome II, applies to non-contractual disputes and comes into force in January 2009.

The Regulations aim to give parties to a contract the freedom to decide what country’s laws should apply to their situation and set out rules as to what laws will apply if the contract does not specify the law to be applied.

Any business dealing with cross-border matters or that deal with customers or suppliers in other EU states should make it clear in all contracts entered into from now on whose laws should apply in the event of a dispute, whether contractual or otherwise. If you don't you could be at the mercy of a legal system you won't like!

This blog is not intended to constitute legal advice, nor is it intended to be a complete and authoritative statement of the law, and what we say might be out of date by the time you read it. You should always seek legal advice to confirm whether or how any information in this article applies to your particular situation. We offer a free telephone consultation to discuss your particular circumstances.

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